Increases Dividend for Twelfth Consecutive Quarter to $0.2775 per
Share

j2 Global, Inc. (NASDAQ-GS:JCOM) today reported financial results for
the second quarter ended June 30, 2014 and announced that its Board of
Directors has declared a quarterly cash dividend of $0.2775 per share,
j2's twelfth consecutive quarterly dividend increase.

SECOND QUARTER 2014 RESULTS

Business Cloud Services revenues(1) increased 12.0% to a
record $105.3 million compared to $94.0 million for Q2 2013. Digital
Media revenues increased 17.2% to a record $38.2 million compared to
$32.6 for Q2 2013. Intellectual Property (IP) Licensing revenues
decreased to $1.2 million from $14.7 million for Q2 2013, due primarily
to the Company securing a $27 million license agreement in Q3 2013 that
increased revenues that quarter by $12.6 million from past damages (the
"Q2 2013 License Agreement").(2)

Consolidated revenues for the quarter increased 2.3% to a record $144.7
million compared to $141.4 million in Q2 2013. Adjusted Non-GAAP
revenues for the quarter increased 14.4% to $145.7 million compared to
$127.4 million in Q2 2013.(3)

Earnings per diluted share(4) for the quarter decreased
(5.2)% to $0.73 compared to $0.77 for Q2 2013, due primarily to
approximately $0.17 from the Q2 2013 License Agreement. Adjusted
Non-GAAP earnings per diluted share(4)(5) for the quarter
increased 10.5% to $0.84 compared to $0.76 for Q2 2013.

EBITDA(6) for the quarter increased 18.4% to $63.7 million
compared to $53.8 million for Q2 2013.

Free cash flow(7) for the quarter increased 38% to $54.1
million compared to $39.2 million for Q2 2013.

j2 ended the quarter with $708.5 million in cash and investments after
issuing convertible senior notes with net proceeds of $391.4 million and
deploying $53.5 million for acquisitions during the quarter and j2's
regular quarterly dividend payment.

Key GAAP financial results for Q2 2014 versus Q2 2013 are set forth in
the following table (in millions, except per share).

Q2 2014

Q2 2013

% Change

Revenues

Cloud Services

$105.3 million

$94.0 million

12.0%

Digital Media

$38.2 million

$32.6 million

17.2%

IP Licensing

$1.2 million

$14.7 million

(91.8)%

Total:

$144.7 million

$141.4 million

2.3%

Earnings per Diluted Share (4)

$0.73

$0.77

(5.2)%

Key Adjusted Non-GAAP financial results for Q2 2014 versus Q2 2013 are
set forth in the following table (in millions, except per share).
Reconciliations of revenues, earnings per diluted share, EBITDA and free
cash flow to their nearest comparable GAAP financial measures are
attached to this Press Release.

Q2 2014

Q2 2013

% Change

Adjusted Non-GAAP Revenues

Cloud Services

$106.3 million

$94.0 million

13.1%

Digital Media

$38.2 million

$31.2 million

22.4%

IP Licensing

$1.2 million

$2.2 million

(45.5)%

Total:

$145.7

$127.4

14.4%

Adjusted Non-GAAP Earnings per Diluted Share (4) (5)

$0.84

$0.76

10.5%

EBITDA (6)

$63.7 million

$53.8 million

18.4%

Free Cash Flow(7)

$54.1 million

$39.2 million

38%

"This was a great quarter," said Hemi Zucker, j2's CEO. "We grew our
Digital Media revenues(3) by 22.4% and our Cloud Services
revenues(3) by 13.1%, each versus Q2 2013. We made
significant progress on several key strategic priorities, including
further reducing our churn rate and continuing to increase our non-fax
business - which now comprises more than 52% of our revenues - while
simultaneously growing our fax business. In addition, our cost
containment in our Cloud Services and Digital Media businesses allowed
us to flow through more than 50% of incremental revenues in those
businesses to EBITDA. With more than $700 million in cash and
investments on hand, we are in a strong position."

BUSINESS OUTLOOK

j2 is reaffirming its previously announced fiscal 2014 revenues estimate
of between $580 and $600 million.

In Q2 2014, j2 issued $402.5 million in convertible senior notes, which
will adversely impact 2014 earnings per diluted share by approximately
$0.10. Notwithstanding this impact, j2 is reaffirming its previously
announced fiscal 2014 Adjusted Non-GAAP earnings per diluted share
estimate of between $3.23 and $3.47.

Adjusted Non-GAAP earnings per diluted share for 2014 excludes
share-based compensation of between $10 and $12 million, amortization of
acquired intangibles and the impact of any currently unanticipated
items, and adds back $1.5 million to reflect the impact of the fair
value adjustment to deferred revenues purchased in the Livedrive
acquisition, in each case net of tax.

It is anticipated that the Adjusted Non-GAAP tax rate for 2014 will be
between 27% and 29%.

DIVIDEND

j2's Board of Directors has approved a cash dividend of $0.2775 per
common share, a 12.1% increase versus the dividend paid in Q3 2013. This
is j2's twelfth consecutive quarterly dividend increase since its first
quarterly dividend in September 2011. The dividend will be paid on
September 2, 2014 to all shareholders of record as of the close of
business on August 18, 2014. Future dividends will be subject to Board
approval.

For more information on the Q2 2013 License Agreement please refer
to j2's Current Report on Form 8-K filed with the Securities and
Exchange Commission on April 25, 2013. For Q2 2013, approximately
$0.3 million of non-patent, licensing revenues have been
reclassified to Cloud Services revenue.

The estimated GAAP effective tax rates were approximately 10.9% for
Q2 2014 and 24.7% for Q2 2013. The estimated Adjusted Non-GAAP
effective tax rates were approximately 27.1% for Q2 2014 and 24.2%
for Q2 2013.

(5)

For Q2 2014, Adjusted Non-GAAP earnings per diluted share excludes
share-based compensation, certain acquisition-related integration
costs, amortization of acquired intangibles and additional tax
expense (benefit) from prior years, and adds back the impact of the
fair value adjustment to deferred revenues purchased in the
Livedrive acquisition, in each case net of tax, totaling $0.12. For
Q2 2013, Adjusted Non-GAAP earnings per diluted share excludes
share-based compensation, certain acquisition-related integration
costs, amortization of acquired intangibles and earnings
attributable to the Q2 2013 License Agreement, in each case net of
tax, totaling $(0.01). Adjusted Non-GAAP earnings per diluted share
amounts are not meant as a substitute for GAAP, but are solely for
informational purposes.

(6)

EBITDA is defined as earnings before interest and other expense,
net; income tax expense; depreciation and amortization; and the
items used to reconcile EPS to Adjusted Non-GAAP EPS referred to in
Note (5) above. EBITDA amounts are not meant as a substitute for
GAAP, but are solely for informational purposes.

(7)

Free cash flow is defined as net cash provided by operating
activities, less purchases of property, plant and equipment, plus
excess tax benefit from share-based compensation. Free cash flow for
Q2 2013 excludes $27 million received under the Q2 2013 License
Agreement. Free cash flow amounts are not meant as a substitute for
GAAP, but are solely for informational purposes.

About j2 Global

j2 Global, Inc. (NASDAQ:JCOM) provides Internet services through two
divisions: Business Cloud Services and Digital Media. The Business Cloud
Services Division offers Internet fax, virtual phone, hosted email,
email marketing, online backup, unified communications and CRM
solutions. It markets its services principally under the brand names eFax®,
eVoice®,
FuseMail®,
Campaigner®,
KeepItSafe®,
Livedrive®
and Onebox®,
and operates a messaging network spanning 50 countries on six
continents. The Digital Media Division offers technology, gaming and
lifestyle content through its digital properties, which include PCMag.com, IGN.com,
AskMen.com,
Toolbox.com
and others. The Digital Media Division also operates NetShelter®
Powered by BuyerBase®,
an advanced digital ad targeting platform, and Ziff Davis B2B, a leading
provider of research to enterprise buyers and leads to IT vendors. As of
December 31, 2013, j2 had achieved 18 consecutive fiscal years of
revenue growth. For more information about j2, please visit www.j2global.com.

"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: Certain statements in this Press Release are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995, particularly those contained
in the "Business Outlook" portion regarding the Company's expected
fiscal 2014 financial performance. These forward-looking statements are
based on management's current expectations or beliefs and are subject to
numerous assumptions, risks and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. These factors and uncertainties include, among other items:
ability to successfully diversify and grow our business, including both
the Business Cloud Services and Digital Media Divisions; ability to
identify, close and successfully integrate acquisitions; risks of
geographic expansion; risks that markets we choose to enter fail to
achieve desired levels of growth and profitability prospects; subscriber
growth and retention; variability of revenue based on changing
conditions in particular industries and the economy generally;
protection of the Company's proprietary technology or infringement by
the Company of intellectual property of others; the risk of adverse
changes in the U.S. or international regulatory environments surrounding
messaging and communications, including but not limited to the
imposition or increase of taxes or regulatory-related fees; and the
numerous other factors set forth in j2's filings with the Securities and
Exchange Commission ("SEC"). For a more detailed description of the risk
factors and uncertainties affecting j2, refer to the 2013 Annual Report
on Form 10-K filed by j2 on March 3, 2014, and the other reports filed
by j2 from time-to-time with the SEC, each of which is available at www.sec.gov.
The forward-looking statements provided in this press release and
particularly those contained in the "Business Outlook" portion regarding
the Company's expected fiscal 2014 financial performance are based on
limited information available to the Company at this time, which is
subject to change. Although management's expectations may change after
the date of this press release, the Company undertakes no obligation to
revise or update these statements.

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

JUNE 30,

DECEMBER 31,

2014

2013

ASSETS

Cash and cash equivalents

$

591,881

$

207,801

Short-term investments

61,687

90,789

Accounts receivable, net of allowances of $3,937 and $4,105,
respectively

70,830

67,245

Prepaid expenses and other current assets

33,841

20,064

Deferred income taxes

3,232

3,126

Total current assets

761,471

389,025

Long-term investments

54,934

47,351

Property and equipment, net

40,662

31,200

Goodwill

514,539

457,422

Other purchased intangibles, net

254,833

223,533

Deferred income taxes

-

1,845

Other assets

13,378

3,413

TOTAL ASSETS

$

1,639,817

$

1,153,789

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and accrued expenses

$

65,586

$

69,570

Income taxes payable

4,727

1,569

Deferred revenue

57,315

36,326

Liability for uncertain tax positions

-

5,535

Deferred income taxes

1,683

1,892

Other current liabilities

909

—

Total current liabilities

130,220

114,892

Long-term debt

589,603

245,670

Liability for uncertain tax positions

42,650

38,329

Deferred income taxes

66,095

35,833

Deferred revenue

11,742

11,189

Other long-term liabilities

5,915

1,458

Total liabilities

846,225

447,371

Commitments and contingencies

—

—

Stockholders' Equity:

Preferred stock

—

—

Common stock

468

461

Additional paid-in capital

266,122

216,872

Retained earnings

520,351

484,850

Accumulated other comprehensive income

6,651

4,235

Total stockholders' equity

793,592

706,418

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,639,817

$

1,153,789

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

THREE MONTHS ENDED JUNE 30,

SIX MONTHS ENDED JUNE 30,

2014

2013

2014

2013

Cloud Service Revenue

$

105,340

$

94,036

$

204,241

$

184,054

Digitial Media Revenue

38,221

(1)

32,592

(1)

71,515

(1)

55,471

(1)

IP Licensing Revenue

1,183

14,733

3,112

15,453

Revenues

144,744

141,361

278,868

254,978

Cost of revenues (including share-based compensation of $27 and $181
for the three and six months of 2014, respectively, and $205 and
$419 for the three and six months of 2013, respectively)

25,559

22,679

48,947

42,914

Gross profit

119,185

118,682

229,921

212,064

Operating expenses:

Sales and marketing (including share-based compensation of $426 and
$917 for the three and six months of 2014, respectively, and $432
and $850 for the three and six months of 2013, respectively)

35,329

35,213

68,288

64,851

Research, development and engineering (including share-based
compensation of $222 and $362 for the three and six months of 2014,
respectively, and $102 and $208 for the three and six months of
2013, respectively)

7,601

6,388

14,814

13,134

General and administrative (including share-based compensation of
$1,288 and $2,888 for the three and six months of 2014,
respectively, and $1,596 and $3,206 for the three and six months of
2013, respectively)

31,418

24,474

60,397

48,485

Total operating expenses

74,348

66,075

143,499

126,470

Income from operations

44,837

52,607

86,422

85,594

Interest expense (income), net

5,682

4,859

10,630

9,736

Other expense (income), net

(186

)

(42

)

(505

)

(203

)

Income before income taxes

39,341

47,790

76,297

76,061

Income tax expense

4,292

11,823

12,483

17,323

Net income

35,049

35,967

63,814

58,738

Less net loss attributable to noncontrolling interest

—

(73

)

—

(224

)

Net income attributable to j2 Global, Inc. common shareholders

$

35,049

$

36,040

$

63,814

$

58,962

Basic net income per common share:

Net income attributable to j2 Global, Inc. common shareholders

$

0.73

$

0.78

$

1.34

$

1.28

Diluted net income per common share:

Net income attributable to j2 Global, Inc. common shareholders

$

0.73

$

0.77

$

1.33

$

1.26

Basic weighted average shares outstanding

46,745,596

45,428,230

46,556,428

45,294,925

Diluted weighted average shares outstanding

47,067,767

46,018,245

46,911,574

45,881,465

(1)

Amount excludes inter-segment revenue between Business Cloud and
Digital Media

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

SIX MONTHS ENDED JUNE 30,

2014

2013

Cash flows from operating activities:

Net income

$

63,814

$

58,738

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation and amortization

28,455

18,241

Accretion and amortization of discount and premium on investments

654

820

Amortization of financing costs and discounts

641

300

Share-based compensation

4,347

4,683

Excess tax benefit from share-based compensation

(4,803

)

(1,581

)

Provision for doubtful accounts

1,810

1,279

Deferred income taxes

(780

)

(542

)

Decrease (increase) in:

Accounts receivable

5,691

2,886

Prepaid expenses and other current assets

(3,151

)

929

Other assets

(3

)

487

(Decrease) increase in:

Accounts payable and accrued expenses

(3,616

)

4,998

Income taxes payable

(320

)

212

Deferred revenue

364

14,049

Liability for uncertain tax positions

(1,213

)

3,512

Other liabilities

(84

)

10

Net cash provided by operating activities

91,806

109,021

Cash flows from investing activities:

Maturity of certificate of deposit

14,520

31,120

Purchase of certificates of deposit

—

(13,861

)

Sales of available-for-sale investments

51,929

67,261

Purchases of available-for-sale investments

(45,043

)

(91,729

)

Purchases of property and equipment

(4,023

)

(5,989

)

Purchases of intangible assets

(3,899

)

(1,261

)

Acquisition of business

(79,546

)

(81,150

)

Net cash used in investing activities

(66,062

)

(95,609

)

Cash flows from financing activities:

Issuance of long term debt

402,500

—

Debt issuance costs

(11,069

)

(47

)

Repurchases of stock

(4,733

)

(2,266

)

Issuance of stock, net of costs

5,316

6,630

Excess tax benefit from share-based compensation

4,803

1,581

Dividends paid

(25,302

)

(21,762

)

Acquisition of business

(13,473

)

—

Other

(163

)

—

Net cash provided by (used in) financing activities

357,879

(15,864

)

Effect of exchange rate changes on cash and cash equivalents

457

(1,302

)

Net increase (decrease) in cash and cash equivalents

384,080

(3,754

)

Cash and cash equivalents at beginning of period

207,801

218,680

Cash and cash equivalents at end of period

$

591,881

$

214,926

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED JUNE 30, 2014 AND 2013

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Adjusted non-GAAP net income is GAAP net income with the following
modifications: (1) elimination of share-based compensation and the
associated payroll tax expense; (2) elimination of certain
acquisition-related integration costs and the impact of fair value
adjustments to deferred revenue purchased in the Livedrive
acquisition; (3) elimination of amortization of patents and
intangible assets that we acquired; (4) elimination of additional
income tax benefit from prior years; (5) elimination of revenue
associated with past damages under a single $27 million license
agreement; and (6) elimination of income tax provision associated
with share-based compensation and the associated payroll tax
expense, certain acquisition-related integration costs and fair
value adjustments to deferred revenue, amortization of patents and
intangible assets that we acquired, additional income tax benefit
from prior years and revenue associated with past damages under a
single $27 million

THREE MONTHS ENDED JUNE 30, 2014

THREE MONTHS ENDED JUNE 30, 2013

(2)

(4)

(2)

Acquisition-

Additional

Acquisition-

(1)

related

Tax Expense

(1)

related

(5)

Share-based

Integration

(3)

(Benefit) from

Adjusted

Share-based

Integration

(3)

Patent

Adjusted

GAAP

Compensation

Costs

Amortization

Prior Years

Non-GAAP

GAAP

Compensation

Costs

Amortization

Settlement

Non-GAAP

Revenues

$

144,744

—

985

—

—

$

145,729

$

141,361

—

(1,348

)

—

(12,572

)

$

127,441

Cost of revenues

25,559

(27

)

—

(855

)

—

24,677

22,679

(205

)

—

—

—

22,474

Operating expenses:

Sales and marketing

35,329

(426

)

(41

)

—

—

34,862

35,213

(432

)

(2,061

)

—

—

32,720

Research, development and engineering

7,601

(222

)

—

—

—

7,379

6,388

(102

)

-

—

—

6,286

General and administrative

31,418

(1,288

)

(589

)

(11,435

)

—

18,106

24,474

(1,596

)

(1,270

)

(7,223

)

—

14,385

Interest expense (income), net

5,682

—

(439

)

—

—

5,243

4,859

—

—

—

—

4,859

Other expense (income), net

(186

)

—

—

—

—

(186

)

(42

)

—

—

—

—

(42

)

Income tax provision (6)

4,292

696

649

3,982

5,487

15,106

11,823

779

843

2,470

(4,614

)

11,301

Net income attributable to j2 Global, Inc. common stockholders

$

35,049

1,267

1,405

8,308

(5,487

)

$

40,542

$

36,040

1,556

1,140

4,753

(7,958

)

$

35,531

Net income per share attributable to j2 Global, Inc. common
stockholders*:

Basic

$

0.73

0.03

0.03

0.18

(0.12

)

$

0.85

$

0.78

0.03

0.03

0.10

(0.18

)

$

0.77

Diluted

$

0.73

0.03

0.03

0.18

(0.12

)

$

0.84

$

0.77

0.03

0.02

0.10

(0.17

)

$

0.76

* The reconciliation of net income per share from GAAP to adjusted
non-GAAP may not foot since each is calculated independently.

The Company discloses adjusted non-GAAP Earnings Per Share ("EPS")
as supplemental non-GAAP financial performance measure, as it
believes it is a useful metric by which to compare the performance
of its business from period to period. The Company also
understands that this adjusted non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the
presentation of this adjusted non-GAAP financial measure provides
useful information to investors.

Adjusted non-GAAP EPS is not in accordance with, or an alternative
to, net income per share and may be different from non-GAAP measures
with similar or even identical names used by other companies. In
addition, this adjusted non-GAAP measure is not based on any
comprehensive set of accounting rules or principles. This adjusted
non-GAAP measure has limitations in that it does not reflect all of
the amounts associated with the Company's results of operations
determined in accordance with GAAP.

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Adjusted non-GAAP net income is GAAP net income with the following
modifications: (1) elimination of share-based compensation and the
associated payroll tax expense; (2) elimination of certain
acquisition-related integration costs and the impact of fair value
adjustments to deferred revenue purchased in the Livedrive
acquisition; (3) elimination of amortization of patents and
intangible assets that we acquired; (4) elimination of additional
income tax and indirect tax expense and benefit from prior years;
(5) elimination of revenue associated with past damages under a
single $27 million license agreement; and (6) elimination of income
tax provision associated with share-based compensation and the
associated payroll tax expense, certain acquisition-related
integration costs and fair value adjustments to deferred revenue,
amortization of patents and intangible assets that we acquired,
additional indirect tax expense and benefit from prior years and
elimination of revenue associated with past damages under a single
$27 million license agreement.

SIX MONTHS ENDED JUNE 30, 2014

SIX MONTHS ENDED JUNE 30, 2013

(2)

(4)

(2)

Acquisition-

Additional

Acquisition-

(1)

related

Income Tax

(1)

related

(5)

Share-based

Integration

(3)

Benefit from

Adjusted

Share-based

Integration

(3)

Patent

Adjusted

GAAP

Compensation

Costs

Amortization

Prior Years

Non-GAAP

GAAP

Compensation

Costs

Amortization

Settlement

Non-GAAP

Revenues

$

278,868

—

1,526

—

—

$

280,394

$

254,978

—

(1,392

)

—

(12,572

)

$

241,014

Cost of revenues

48,947

(181

)

—

(1,279

)

—

47,487

42,914

(419

)

(88

)

—

—

42,407

Operating expenses:

Sales and marketing

68,288

(917

)

(60

)

—

—

67,311

64,851

(850

)

(3,053

)

—

—

60,948

Research, development and engineering

14,814

(362

)

—

—

—

14,452

13,134

(208

)

(579

)

—

—

12,347

General and administrative

60,397

(2,887

)

472

(21,395

)

(713

)

35,874

48,485

(3,206

)

(3,749

)

(13,945

)

—

27,585

Interest expense (income), net

10,630

—

(439

)

—

—

10,191

9,736

—

—

—

—

9,736

Other expense (income), net

(505

)

—

—

—

—

(505

)

(203

)

—

—

—

—

(203

)

Income tax provision (6)

12,483

1,520

365

7,413

6,849

28,630

17,323

1,553

2,606

4,781

(4,614

)

21,649

Net income attributable to j2 Global, Inc. common stockholders

$

63,814

2,827

1,188

15,261

(6,136

)

$

76,954

$

58,962

3,130

3,471

9,164

(7,958

)

$

66,769

Net income per share attributable to j2 Global, Inc. common
stockholders*:

Basic

$

1.34

0.06

0.03

0.33

(0.12

)

$

1.62

$

1.28

0.07

0.08

0.20

(0.18

)

$

1.45

Diluted

$

1.33

0.06

0.03

0.33

(0.12

)

$

1.60

$

1.26

0.07

0.08

0.20

(0.17

)

$

1.43

* The reconciliation of net income per share from GAAP to adjusted
non-GAAP may not foot since each is calculated independently.

The Company discloses adjusted non-GAAP Earnings Per Share ("EPS")
as supplemental non-GAAP financial performance measure, as it
believes it is a useful metric by which to compare the performance
of its business from period to period. The Company also understands
that this adjusted non-GAAP measure is broadly used by analysts,
rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the presentation
of this adjusted non-GAAP financial measure provides useful
information to investors.

Adjusted non-GAAP EPS is not in accordance with, or an alternative
to, net income per share and may be different from non-GAAP measures
with similar or even identical names used by other companies. In
addition, this adjusted non-GAAP measure is not based on any
comprehensive set of accounting rules or principles. This adjusted
non-GAAP measure has limitations in that it does not reflect all of
the amounts associated with the Company's results of operations
determined in accordance with GAAP.

j2 GLOBAL, INC.

NET INCOME TO EBITDA RECONCILIATION

THREE MONTHS ENDED JUNE 30, 2014 AND 2013

(UNAUDITED, IN THOUSANDS)

The following table sets forth a reconciliation of EBITDA to net
income, the most directly comparable GAAP financial measure.

THREE MONTHS ENDED JUNE 30,

SIX MONTHS ENDED JUNE 30,

2014

2013

2014

2013

Net income

$

35,049

$

35,967

$

63,814

$

58,738

Plus:

Other expense (income), net

(186

)

(42

)

(505

)

(203

)

Interest expense (income), net

5,682

4,859

10,630

9,736

Income tax expense

4,292

11,823

12,483

17,323

Depreciation and amortization

15,317

9,454

28,455

18,248

Reconciliation of GAAP to adjusted non-GAAP financial measures:

Patent Settlement

—

(12,572

)

—

(12,572

)

Share-based compensation and the associated payroll tax expense

1,963

2,335

4,347

4,683

Acquisition-related integration costs

1,615

1,983

1,114

6,077

Additional indirect tax expense from prior years

—

—

713

—

EBITDA

$

63,732

$

53,807

$

121,051

$

102,030

EBITDA as calculated above represents earnings before interest and
other expense, net, income tax expense, depreciation and
amortization and the items used to reconcile GAAP to adjusted
non-GAAP financial measures, including (1) share-based compensation,
(2) certain acquisition-related integration costs and (3) additional
indirect tax expense from prior years. We disclose EBITDA as a
supplemental non-GAAP financial performance measure as we believe it
is a useful metric by which to compare the performance of our
business from period to period. We understand that measures similar
to EBITDA are broadly used by analysts, rating agencies and
investors in assessing our performance. Accordingly, we believe that
the presentation of EBITDA provides useful information to investors.

EBITDA is not in accordance with, or an alternative to, net income,
and may be different from non-GAAP measures used by other companies.
In addition, EBITDA is not based on any comprehensive set of
accounting rules or principles. This adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts
associated with the Company's results of operations determined in
accordance with GAAP.

j2 GLOBAL, INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

Q1

Q2

Q3

Q4

YTD

2014

Net cash provided by operating activities

$

37,294

$

54,512

$

91,806

Less: Purchases of property and equipment

(2,936

)

(1,087

)

(4,023

)

Add: Excess tax benefit from share-based compensation

4,082

721

4,803

Free cash flows

$

38,440

$

54,146

$

-

$

-

$

92,586

2013

Net cash provided by operating activities

$

40,048

$

68,973

$

25,859

$

58,444

$

193,324

Less: Purchases of property and equipment

(1,933

)

(4,056

)

(5,126

)

(7,511

)

(18,626

)

Add: Excess tax benefit (deficit) from share-based compensation

280

1,301

1,590

(476

)

2,695

Less: Patent Settlement

-

(27,000

)

-

-

(27,000

)

Free cash flows

$

38,395

$

39,218

$

22,323

$

50,457

$

150,393

The Company discloses Free Cash Flows as supplemental non-GAAP
financial performance measure, as it believes it is a useful metrics
by which to compare the performance of its business from period to
period. The Company also understands that this non-GAAP measure is
broadly used by analysts, rating agencies and investors in assessing
the Company's performance.

Accordingly, the Company believes that the presentation of this
non-GAAP financial measure provides useful information to
investors.

Free Cash Flows is not in accordance with, or an alternative to,
Cash Flows from Operating Activities, and may be different from
non-GAAP measures with similar or even identical names used by other
companies. In addition, the non-GAAP measure is not based on any
comprehensive set of accounting rules or principles. This non-GAAP
measure has limitations in that it does not reflect all of the
amounts associated with the Company's results of operations
determined in accordance with GAAP.